Overview
- The Gangwon Provincial Police Agency opened the probe on June 5 at the request of the National Police Agency and is investigating South Korean users who placed wagers on Polymarket election markets.
- Local reporting says Korean users wagered large sums on markets tied to the June 3 local elections, with estimates of more than $52 million in trading that drew national attention.
- Authorities are examining whether participation falls under Article 246 of the Criminal Act, which can carry fines up to ₩10 million for illegal gambling.
- Polymarket runs on Ethereum without geographic blocks and users reportedly traded with dollar‑pegged stablecoins, so investigators are focusing on identifying and charging individuals rather than blocking the platform.
- Lawyers note there is no domestic precedent for prosecuting Polymarket use, and the case follows a wider push by Korean authorities to apply existing laws to decentralized crypto activity such as the recent CATFI prosecution.